Institutions, economic development and aid

This article reviews Development Economics and Political Economy theoretical and empirical literature in order to find which institutions are most important to achieve stable economic development.

The conclusion is that these institutions are those which serve as checks and balances on government decisions, specifically the laws that provide the state with an independent and capable judicial system, a professional bureaucracy and a comprehensive civil society representation system.

Finally, it is argued that it is necessary that International Cooperation agencies stop ignoring or camouflaging political issues and start promoting professional, representative and rule of law states under objective, clear and transparent criteria.